German Medical Cannabis Market Has Yet to Reach Its Full Potential
Germany’s Cannabis Act (CanG) is beginning to transform the country's medical cannabis market, with potential opportunities to expand telemedicine, improve physician training, and enhancing accessibility in this rapidly growing industry.
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On April 1, 2024, the Cannabis Act (CanG) passed in Germany and reclassified cannabis as a non-narcotic. These legislative actions eased administrative barriers for patients and prescribing doctors, sparking significant growth in the market. Since then, the medical cannabis industry has seen a substantial increase in both patient numbers and supply.
As of April 2024, there are an estimated 300,000 patients who use medical cannabis with 17 tons of supply. Yet the passage of CanG has only started to ignite momentum in the market. According to calculations based on findings in Bloomwell Group’s recent report titled “The Cannabis Barometer: Motives, Concerns and Preferences of Cannabis Consumers in Germany,” the German medical cannabis company found that the market has the potential to reach more than 20 million patients and a supply of 60,000 tons. With this in mind, Germany is poised to become one of the largest and most promising medical cannabis markets in the world, offering a bright future for investors, policymakers, and healthcare professionals.1
Majority of German Consumers Cite Health Reasons for Cannabis Use
Bloomwell Group’s 2024 report revealed that 94% of respondents who consumed cannabis did so for at least one medical or health reason. The most common reason cited by respondents for consuming cannabis was for stress relief (about 60%), followed by sleeping disorders (50.4%) and pain relief (35%).1
The report also revealed that while the majority of cannabis users in Germany use the plant for medical or health reasons, within the past year, only 10% of the survey participants obtained cannabis exclusively from licensed pharmacies. Almost 60% of consumers continue to obtain their cannabis illegally, often despite their concerns about poor quality and associated health damage. Over a quarter of respondents (26%) said they had already purchased contaminated cannabis, while around 31% had obtained poor quality on the illegal market in the past.1
Improving Patient Access Through Medical Training and Guidance from Experts
One of the key barriers to consumers being able to access medical cannabis through a pharmacy is the lack of doctors who are willing and experienced in prescribing cannabis as a medical treatment. Despite the improved legal framework, over 90% of those surveyed struggle to find a doctor who is open to cannabis therapy and has the necessary expertise. This highlights the urgent need for more doctors to be trained and open to prescribing medical cannabis, a crucial step in improving patient access and care.
Physicians who specialize in medical cannabis should lead conversations, spread awareness, and help educate other doctors in the field about cannabis as a medical treatment and its health potential. In addition, it’s important for medical professionals to provide evidence-based factual information to the public that can help ease outdated stigmas and myths surrounding cannabis. They should also take a firm hand in helping to guide regulatory leaders and professionals within the scientific and medical communities as they seek to ease regulations surrounding the research of cannabis for patients.
Technology to Drive Patient Access and Ease of Use
Within the last few years, telemedicine has increased worldwide, partly due to the travel and social distancing limitations imposed by the COVID-19 pandemic. According to McKinsey & Company, by the second quarter of 2022, 96 percent of outpatient practitioners in Germany were linked to the telematics infrastructure, up from 90 percent in 2020. As of the second quarter of 2022, 99 percent of pharmacies in Germany were connected to the telematics infrastructure, a significant increase from 75 percent in 2021, according to McKinsey & Company.2
Telemedicine allows patients to access medical care consultations without having to travel to a physician's physical office. Using video chat, patients can speak with healthcare providers about their medical conditions, and doctors can prescribe medical cannabis based on the patient’s symptoms. Not only does this provide convenience and accessibility for patients, but it also helps reduce healthcare costs associated with in-person visits and cuts waiting times. This is especially useful to medical cannabis patients who are in remote parts of Germany and may not be in an area that has a doctor who specializes in cannabis therapy. Such advancements also allow pharmacies to receive digital prescriptions from prescribing physicians and fulfill them on-site.
Cannabis patients have reported to prefer to receive prescribed cannabis products through a digital application and have them delivered directly to them from the pharmacy. According to the Bloomwell report, 92% of those surveyed would like cannabis treatment through an app with delivery from the pharmacy.1
Opportunities for Growth
Stakeholders have opportunities to build upon the areas of the industry that are already fueling growth, like telemedicine, and also provide strategies to help transition German consumers from the illicit market to the legal medical market.
To do this, it is important for key players within the industry to help fuel conversations about medical cannabis therapy and the patient process. Providing clear and accurate information about the benefits and regulations of the legalized medical cannabis market can help patients understand the benefits of securing cannabis through licensed pharmacies rather than risk contaminated products from the illicit market.
In addition, industry leaders and regulators alike should work together to ensure that legalized medical cannabis stays accessible and affordable for patients. The cost of medical cannabis must be competitive with that of the illicit market. To provide a steady supply, international imports of medical cannabis are needed and must continue to grow to meet consumer demand. Investors will need to continue fueling the German import market to ensure patients receive uninterrupted access to their prescribed treatment.
About the Author
Niklas Kouparan is the CEO and Co-Founder of Bloomwell Group.
References
- Bloomwell Group. The Cannabis Barometer: Motives, Concerns and Preferences of Cannabis Consumers in Germany. Bloomwell GmBH, Frankfurt, DE, 2024. https://25378200.fs1.hubspotusercontent-eu1.net/hubfs/25378200/Report%20Motives%20Cannabis%202024%20E.pdf (accessed 2024-11-10).
- Messal, H.; Niedermann, F.; Padmanabhan, P.; Müller, T.; Lösch, M.; Silberzahn, T.; Richter, L. Telemedicine in Germany: A Rapid Evolution Amid COVID-19. McKinsey & Company, Stuttgart, DE, 2022. https://www.mckinsey.com/industries/life-sciences/our-insights/german-e-health-offerings-expand-but-adoption-remains-uneven (accessed 2024-11-10).
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